Sive Morten
Special Consultant to the FPA
- Messages
- 18,655
Morning folks,
EUR setup we've discussed yesterday and it stands the same - we see clear bearish signs there. But we also have another one on GBP and today we take a look at it.
If you remember we have long-term bearish view on GBP and search chance to go short with continuation of major downside trend. But, as on daily chart market shows some reaction on OP target, the point where we could go short could be different. If our reverse H&S patterns works, we consider upside AB-CD action, somewhere to 1.28 area, while if it fails - it will be time to go short immediately. Now we close to the second scenario:
Initially our plan suggests keep an eye on 1.2611 Agreement support, because this is the point where normal bullish market should turn up. But what do we see right now? No reaction on this level:
Next target is XOP but it stands near the bottom. Besides, if Agreement support was not able to hold price - whether simple extension could do this? I have real doubts on this. Thus, I would say that GBP is one leg to collapse as H&S almost has failed. If we wouldn't have NFP today, now we would say that it is time to go short. You could decide, whether to wait NFP numbers or not. NFP could change situation and become a driver, but pure technically picture looks bearish.
EUR setup we've discussed yesterday and it stands the same - we see clear bearish signs there. But we also have another one on GBP and today we take a look at it.
If you remember we have long-term bearish view on GBP and search chance to go short with continuation of major downside trend. But, as on daily chart market shows some reaction on OP target, the point where we could go short could be different. If our reverse H&S patterns works, we consider upside AB-CD action, somewhere to 1.28 area, while if it fails - it will be time to go short immediately. Now we close to the second scenario:
Initially our plan suggests keep an eye on 1.2611 Agreement support, because this is the point where normal bullish market should turn up. But what do we see right now? No reaction on this level:
Next target is XOP but it stands near the bottom. Besides, if Agreement support was not able to hold price - whether simple extension could do this? I have real doubts on this. Thus, I would say that GBP is one leg to collapse as H&S almost has failed. If we wouldn't have NFP today, now we would say that it is time to go short. You could decide, whether to wait NFP numbers or not. NFP could change situation and become a driver, but pure technically picture looks bearish.
